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‘Williamson’s Fallacy’ in Estimation of Inter-Regional Inequality

Gluschenko, Konstantin (2015): ‘Williamson’s Fallacy’ in Estimation of Inter-Regional Inequality.

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Following Williamson (1965), many economists estimate inter-regional inequality with the use of indexes weighted by regions’ shares in the national population. Despite that widespread, this approach is conceptually inconsistent, yielding an estimate of interpersonal inequality among the whole population of the country rather than an estimate of inter-regional inequality. On the other hand, if one considers such an estimate as a proxy of population inequality, it is very rough and for the most part misleading.

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